The rating on Trinity River Authority (TRA), Texas' bonds reflects the credit strength of the water and sewer operations of the system's five participating members—Cedar Hill, DeSoto, Lancaster, Duncanville, and Ferris—and specifically, the credit characteristics of Duncanville and DeSoto's enterprise funds, which are: A stable customer base, Good coverage of fixed charges and revenue bond debt, and Rapid maturity of outstanding revenue debt coupled with limited capital needs. The contract between TRA and the participating members specifies an unlimited step-up obligation that requires remaining members to assume a pro rata share of a defaulting members' debt service and operating payments. TRA bills the members monthly for their pro rata share (not actual flows), to meet its annual budget. Each member
